The Salem City Council reviewed the sections of the budget Monday night that include infrastructure improvements during a second budget workshop. Roads as well as water and gas line improvements are all planned.
Public Works Director Travis Sanders says street improvements include $260,000 in motor fuel tax funds set aside for preliminary work on improvements to sections of West Whitaker Street and resurfacing Airport Road. $396,000 in grant money is set aside for an engineering study of needed drainage improvements along airport road.
Sanders says there are plans to replace the waterlines on Deer Path and Meadowlane that have had nine breaks in the past year. That project will be funded through the city’s half-cent sales tax for infrastructure improvement.
A $1-million grant will be utilized to reline the sewer lines on the near southeast side of the city. $200,000 is included to replace the troublesome sewer lift station on Cottonwood Drive. $152,000 is included for the fourth year of work to make improvements to the large tank at the waste water treatment plant.
In the gas fund, 81 residents will receive new natural gas service lines at a cost of $550,000. A new roof and gas is also budget for the gas plant.
City Manager Lisa Peck reported the city staff is still trying to find a way to make the $712,000 payment to the police pension fund without having to take some of the money from reserves. She notes over time the reserves cannot sustain the loss.
The total city budget will total around $21-million, around the same as last year. The general fund budget is just under $7.8-million. Peck says the budget is currently in the red due to the pension funding issue, the loss of property tax replacement funds, and the cost of employee health insurance.
The city council will be asked to give first reading approval to the budget at its meeting next Monday, March 16th. Final approval will be sought at the first meeting in April.
